Question

What is Perfect Competition in the Short Run- Microeconomics

Answer 1

Perfect competition refers to a market structure where in it is characterised by many firms selling the same good with no product differentiation; each firm is a price taker with no market power and can easily enter/exit from the market.

In short run production activity, some of the variables are fixed and some of them would vary. So, each firm in the market would produce a quantity where in the marginal cost of producing a good would equal the marginal revenue of a good.